- Ripple ignored bearish calls to $0.5 but still lags the uptrend under $0.7.
- A symmetrical triangle pattern may catapult XRP to $0.94.
Ripple price holds above the short-term support of $0.65. Buyers rushed to defend the international money transfer token from dropping to $0.5. An extended consolidation period had seen most analysts turn bearish, with calls for losses heading to $0.5.
In the meantime, Ripple is holding onto the immediate support provided at $0.65, a confluence created by the 50 Simple Moving Average (SMA) and the 100 SMA on the four-hour chart. If this support stays intact, XRP will continue with the consolidation ahead of an impending colossal upswing.
Ripple's symmetrical triangle hints at a 35% move
Ripple price 12-hour chart shows the formation of a symmetrical triangle pattern. This pattern has both bearish and bullish biases and is created by converging a couple of trend lines that link a series of sequential peaks and troughs.
The trend lines are supposed to cross at an approximately equal point on the chart, as shown. A consolidation period takes precedence as the symmetrical triangle matures. Realize that a breakdown occurs from the ascending trend line and identifies the beginning of a downtrend.
On the other hand, a breakout happens at the descending trendline and signifies the start of a bullish trend. Symmetrical patterns tend to have precise price targets for the breakout or breakdown, mainly measured from the highest point to the pattern's lowest point.
For instance, if Ripple crosses the upper trend line, a 35% breakout could see it soar to $0.94. A confirmed break above $0.7 is needed to validate the uptrend.
XRP/USD four-hour chart
The Market Value Realized Value (MVRV) by Santiment shows that Ripple is in the buy zone. According to Santiment, this metric shows the profit or loss ratio of the holders of XRP. An MVRV ratio around zero and below indicates that most investors are at a loss. Therefore, they are unlikely to sell until the price recovers. Hence, with the ratio standing at -7%, Ripple may be bolstered significantly upward and perhaps brush shoulders with $1.
Ripple MVRV ratio
Looking at the other side of the fence
The symmetrical triangle pattern also has a bearish bias. Therefore, a massive downswing may come into the picture if Ripple closes the day below the confluence support, and by extension, the lower trendline of the triangle. Note that a 35% downswing will pull XRP toward $0.4.